Ernst & Young reported $45.4 billion in global revenue Wednesday for the fiscal year ending June 30, 2022, a 13.7% increase in U.S. dollars and 16.4% in local currency terms, the highest growth in nearly two decades, as the firm considers spinning off its consulting practice.
It attributed the growth across the firm to its EY NextWave strategy. EY's tax service line rose 7.9% to $11.3 billion, and EY said that made it the largest tax services organization in terms of market share among the Big Four. The consulting side experienced growth of 27.1% in local currency terms and 24.5% in U.S. dollars to $13.9 billion. The strategy and transactions business grew 25.4% in local currency terms and 22.8% in U.S. dollars to $5.9 billion. The assurance side 8.9% in local currency terms and 6% in U.S. dollars to $14.4 billion.
EY's leadership approved the split of the audit and consulting firms earlier this month, but a majority of the firm's partners and member firms across the global have yet to approve the move (
EY global chairman and CEO Carmine Di Sibio has been advocating for the firm to split up since at least May as a way to unlock potential revenue from a public offering of the consulting business, although questions remain over how much revenue the partners in the consulting practice and other parts of the firm would earn from the breakup, and how strong the market is right now for a new consulting firm to go public in today's uncertain economic climate.
"EY has achieved significant growth and continues to operate from a place of strength," Di Sibio said in a statement Wednesday. "I am proud that our growth has been grounded in delivering stakeholder value, executed under the EY NextWave strategy. We have tremendous momentum right now, and growth means opportunity — for EY people, clients and broader stakeholders."
Over the past year, EY has expanded into new markets through technology investments in its EY Pathway employee mobility system, the EY Payroll Operate payroll service, and its Customer Tax Reporting Platform. Eight strategic acquisitions bolstered the tax service line's people advisory, indirect and business tax offerings.
This year EY invested $3.2 billion in audit quality, innovation, technology and people as part of a $10 billion, three-year commitment announced in fiscal year 2021. That includes $1 billion in investment in next-generation assurance technology.
EY also invested $300 million in training, providing over 59 hours of training per employee on average. EY now offers more than 250 learning accreditations, known as EY Badges, including artificial intelligence; blockchain; impact entrepreneurship; supply chain planning; diversity, equity and inclusion; and sustainable business practices, in addition to technical training in accounting and tax.
This year EY announced two new master's degrees in collaboration with Hult International Business School. The new qualifications, in business analytics and sustainability, are open and free to all EY people alongside the EY Tech MBA by Hult. A total of 95 people graduated with an EY Tech MBA and 10 people graduated in the first cohort of the Master's in Business Analytics this year. Cumulatively, 130 people have graduated from the tech MBA and master's programs. EY also opened the EY Tech University in Palo Alto, California, offering technology programs for senior executives and clients.
EY became carbon negative globally in fiscal year 2021, on the way to becoming net zero in 2025. The firm said it recorded a 56% reduction in emissions in fiscal year 2022, compared with the baseline set in fiscal 2019. The firm delivered EY Sustainability solutions to more than 3,000 clients, including through alliances with Enablon, IBM, Microsoft and SAP.
EY has also developed a methodology to provide assurance on non-financial reporting based on the globally accepted International Standard on Assurance Engagements (ISAE 3000) released by the International Auditing and Assurance Standards Board. The organization has also issued new guidance on the audit of financial reporting to help EY audit teams consider the effects of climate-related risks on financial statements.
This year EY said it evolved its approach to diversity and inclusiveness by explicitly incorporating equity. In fiscal year 2022 35% of partner, principal, executive director, and director promotions were women. Overall, there were more than 2,400 promotions to such positions this year, the largest number ever for EY.
